I finally setteled on my deal...39 months @ $559.63/month $787 upfront, which is first payment and doc fee. I think the doc fee is just another way for the dealer to get a couple hundred bucks - but I can't verify that, useless someone knows if US bank charged them a doc fee? What I would really like to know is if you get an extra 3000 miles for the 39 month lease or is it capped at 36,000?

Given the horrible August sales numbers just released by some manufacturers, especially considering the boost that "cash for clunkers" was supposed to give, I am amazed that they would reduce incentives. I would think they would increase them, if anything. I would like to lease an XC90 but I refuse to do it at current prices.

Not really, if you're comparing leasing new vs CPO, the money factors, residuals and monthly payments on a CPO would be much worse, so the CPO payments would likely be higher than new car payments. Plus there's far less transparency/uniformity with used cars so dealers have better chances of ripping off customers than with new.

Independent banks don't like to finance leases for cars that would be 5-8 years old when they come off lease, there's too much back-end risk on residual values so they whack em down low in used car leases.

Plus, you don't get the 5-year safe+sound maintenance-free coverage from new...

All in all, you're way better off leasing new than CPO.

And don't let any used car salesman convince you otherwise. If they do, post your deal terms on this board first before pulling the trigger and we'll give you some honest feedback...

Sorry I missed your point about buying CPO. However, a used CPO car isn't the same as a brand new car so its hard to compare, but lets try to break down the differences between leasing new (2009) vs. buying CPO (2007) over 4 years:

First, you'll spend more on maintenance on a CPO (assume $500-$1000/year?) x 4 years = $2000-$4000. I spent $1500 on tires alone for the first 2 years of our current 2007 XC90 lease, and maintenance is sure to be higher in years 2-6 than 0-2.

Second, your payment ignores sales tax at $601. Including sales tax (9.25% here in California) and using Chase's 5.61% interest rate for California the payment would be $661. This is roughly $98 more per month than the $563/mo lease available on a brand new car (7 passenger AWD), x 48 mos = $4700

Third, to "equalize" the options lacking from the car you've identified, the 7-passenger rear seats were a $2500 option but lets say you can somehow find and install the rear seats for $1250, and install bluetooth for $400.

So, at the end of 4 years in 2013 you've paid off your 2007 CPO car and own it outright, but the difference in cost of ownership ranges from $8,350-$10,350. Will the "equity" in your 2007 model be worth more than $8,350-$10,350 in 2013 (as a 6-7 year old car)? The residual value for the above 2009 lease (AWD 7) in 2013 is $12,397, so $8,350-$10,350 for a 2007 model with higher miles doesnt seem that far off, plus as a CPO owner you take maintenance and RV risk.

If the lease RV is below-market at lease-end the lessee can buy the car and capture any upside. Conversely, if the the RV is above-market at lease-end the lessee doesn't suffer any losses, whereas an owner will suffer the loss. The future market value risk is borne by the bank and the CPO purchaser.

Do you look at this any differently? If so, I'd be curious to understand your analysis and how you conclude that buying CPO is better.

For apple to apple comparisons, I do not include sales tax. I also metioned $0 down; not sure if the lease deal has the same term.

The cost of ownership really depends on what type of maintenance I choose. The local mainekee can perform the basic tire rotation and oil changes inexpensively.

Based on these examples were are at a point where a CPO buy and a new lease might cost the same after 48 months. The leased car goes away whereas the CPO is being kept. 2 more years with no car payments makes it a win-win situation.

Before, when the XC90 was a $429/month deal for 24 months, it was a NO-brainer. I do have a 2008 XC90 with all options but Navi. 24 month lease of course.

Hey goucla. It does not appear as though Volvo is running a special lease program on the XC90 through Volvo Finance this month. If you really want to lease this car, you probably would be best off doing so through US Bank and taking advantage of the additional $3,000 cash incentive that Volvo is providing on leases of the '09 XC90 3.2 and $4,000 on leases of the '10 through independent banks. Unfortunately, I have not seen the US Bank lease program so I don't know what the specifics of it are.

Maybe I'm not a good negotiator, but I've been searching for about a month for a great deal on a CPO '07/'08 XC90 with leather, 3rd row, and AWD with a clean carfax. The prices I'm seeing seem so inflated ($30-33k in Chicago) that I'm beginning to wonder if it isn't worth it go OSD, especially considering the Safe + Sound offer and I even think the Climate package is included for free right now. I estimate my cost new w/OSD at about $37k.

I thought I'd never buy a new car, but the price difference between CPO and OSD is so slim that I'm leaning to OSD. Any comments? Am I reading the market accurately or are these factors I'm not considering?